U.K. BoE and FCA Approach to Joint Regulation of Systemic Stablecoin Issuers (BoE)
The Bank of England (BoE) published a paper that outlines how it and the Financial Conduct Authority (FCA) will jointly regulate “systemic” stablecoin issuers within the new U.K. stablecoin regime created by recent legislative changes. The paper allocates supervisory remits across the two authorities and the Payment Systems Regulator, explains how issuers move from solo Financial Conduct Authority oversight to joint regulation once HM Treasury recognizes them as systemic, and details transitional tools such as staged onboarding and the BoE’s power of direction. It hard‑codes a more prudentially oriented regime for systemic issuers (backing assets in central bank deposits and short‑term gilts, capital and reserve requirements, issuance guardrails) while leaving conduct, disclosure, and competition issues primarily with the Financial Conduct Authority. Unresolved points include final calibration of failure arrangements, guardrail withdrawal, and rule disapplication mechanics. [BoE]
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